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SR or OGS: Which Is the Better Value Stock Right Now?
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Investors interested in Utility - Gas Distribution stocks are likely familiar with Spire (SR - Free Report) and ONE Gas (OGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Spire has a Zacks Rank of #2 (Buy), while ONE Gas has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SR currently has a forward P/E ratio of 16.67, while OGS has a forward P/E of 19.67. We also note that SR has a PEG ratio of 3.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OGS currently has a PEG ratio of 3.93.
Another notable valuation metric for SR is its P/B ratio of 1.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OGS has a P/B of 1.73.
Based on these metrics and many more, SR holds a Value grade of B, while OGS has a Value grade of D.
SR stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SR is the superior value option right now.
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SR or OGS: Which Is the Better Value Stock Right Now?
Investors interested in Utility - Gas Distribution stocks are likely familiar with Spire (SR - Free Report) and ONE Gas (OGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Spire has a Zacks Rank of #2 (Buy), while ONE Gas has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SR currently has a forward P/E ratio of 16.67, while OGS has a forward P/E of 19.67. We also note that SR has a PEG ratio of 3.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OGS currently has a PEG ratio of 3.93.
Another notable valuation metric for SR is its P/B ratio of 1.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OGS has a P/B of 1.73.
Based on these metrics and many more, SR holds a Value grade of B, while OGS has a Value grade of D.
SR stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SR is the superior value option right now.